Sprint Nextel (S) said it entered a new $1 billion credit facility with Deutsche Bank AG (DB) and other lenders to fund equipment purchases from Ericsson (ERIC) as the telecommunications company continues efforts to build out its 4G LTE services.
The Overland Park, Kan.-based carrier has been racing to catch up to larger rivals Verizon Wireless and AT&T Inc. (T) in building out the faster network known as 4G LTE.
Sprint Nextel also said it plans to redeem part of its $1 billion in Nextel Communications notes that come due in the fourth quarter of next year. The company anticipates the remaining balance of the notes will be $473 million.
Sprint Nextel in April reported a wider first-quarter loss, due in part to a charge from the planned shutdown of the Nextel platform, as subscriber additions helped increase the wireless carrier's revenue more than expected.
Sprint shares were up 1.2% at $2.65 in recent trading.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com